Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Television Francaise 1 SA maintained its leadership in commercial targets, with stable audience shares year-on-year despite competition from major events like the Paris Olympics.
- The group's advertising revenue increased by 4.5% year-on-year, with a notable 39.5% growth in digital streaming platform T Plus.
- The company reported a strong financial position with a net cash of EUR364 million at the end of September 2024.
- The group's streaming platform, T Plus, continues to grow, with a 40% increase in advertising revenue compared to last year.
- Television Francaise 1 SA confirmed its 2024 objectives, aiming for a stable current operating margin and continued cash flow generation to support a growing dividend policy.
Negative Points
- The advertising market is showing signs of tension, particularly due to political and tax situations in France, which could impact future revenue.
- Current operating margin from activities decreased slightly to 12.4% from 13.2% last year.
- The production segment's revenue decreased by 3% year-on-year, with significant activity skewed towards the fourth quarter.
- Net cash decreased by EUR141 million over the first nine months, partly due to acquisitions and dividend payments.
- The company faces potential challenges from increased taxes in France, which could affect the effective tax rate and financial performance.
Q & A Highlights
Q: Can you elaborate on the tension in the advertising market for Q4 in France? Do you expect a weaker performance compared to Q3?
A: Visibility remains low in the advertising market, and advertisers are cautious for the end of the year. We expect some tightening, especially considering potential tax changes.
Q: The Q3 current operating profit was above expectations. Were there any unusual items or cost savings that contributed to this?
A: We sold a licensed brand for EUR27 million, which was not operationally used. Additionally, programming costs decreased in Q3 compared to last year, partly due to the absence of the Rugby World Cup.
Q: With the expected tax increases in France, how much could this affect the effective tax rate?
A: We estimate a charge of around EUR20 million for Q4, with the cash out occurring in 2025.
Q: Was the disposal of the brand included in your guidance for a stable COPA margin?
A: Yes, we had various scenarios, including the disposal, when we provided our guidance for 2024.
Q: Regarding Johnson Production Group, what was the impact on revenue and COPA? Is the 30% margin sustainable?
A: The impact on revenue was EUR8 million. The high margin is sustainable due to secured output deals with partners, ensuring a stable level of activity.
Q: How did the Olympic Games impact advertising revenue in July and August?
A: Advertising revenue was flat in July and August compared to last year, demonstrating resilience despite competition. The decline in September was due to a tough comparison with the Rugby World Cup.
Q: With the potential loss of a digital license by a competitor, how could TF1 benefit?
A: We could benefit slightly from this situation, but it won't be a game changer.
Q: Is there any truth to the rumors about the potential sale of "My Little Paris"?
A: We do not comment on such rumors, although we are regularly approached by various players.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
